FTC Bans GM From Selling Driver Data

The Federal Trade Commission (FTC) has banned General Motors (GM) from selling sensitive driver data, including geolocation and driving behavior, to consumer reporting agencies for five years. This decision follows a New York Times investigation that revealed GM's OnStar service was collecting and selling data, such as speeding and hard braking, without proper consumer consent. The data was then used to create risk profiles, impacting insurance premiums. GM has since discontinued its Smart Driver program, ended relationships with data brokers like LexisNexis and Verisk, and revised its privacy policies. The FTC order requires GM to obtain customer consent for data collection and allows customers to disable data tracking. This move highlights increasing regulatory scrutiny on automakers' data practices.